Press Releases| Akeena Solar Announces Fourth Quarter and Year-End 2007 Results | Q4 2007 Revenue Reaches Record $10.3 Million, 130% Growth over Q4 2006
LOS GATOS, Calif.--(BUSINESS WIRE)--March 13, 2008--Akeena Solar,
Inc. (NASDAQ: AKNS), a leading designer and installer of solar power
systems, today announced results for the fourth quarter and year ended
December 31, 2007.
"2007 was a transformational year for Akeena. We exceeded our goal
of 135% revenue growth, vastly expanded our sales footprint, and
scaled our infrastructure to support a $100 million company," said
Barry Cinnamon, president and chief executive officer Akeena Solar.
"And to cap it all off, we launched Andalay, our proprietary solar
panel installation system."
"We expect to complete the transition to Andalay by the end of the
year," added Cinnamon. "Favorable reports from customers and our
installation teams bear out the advantages of Andalay: lower
installation costs, faster installation times and enhanced aesthetics
compared to ordinary systems. These marketing messages are resonating
among prospective customers. As customers compare Andalay to ordinary
solar panels, they are persuaded by the long-term reliability benefits
gained by building the racking, wiring and grounding into the solar
panel at the factory."
Cinnamon concluded, "Our established brand and reputation for
customer service coupled with our proprietary Andalay technology set
Akeena apart and position us at forefront of the solar power
industry."
"Our transition to Andalay in 2008 will simplify our back-office
processes and logistics, yielding greater operational efficiencies in
our business model," said Gary Effren, chief financial officer of
Akeena. "As we scale the business these productivity improvements will
put us on a path to sustainable profitability. We remain committed to
achieving EBITDA breakeven by year-end, adjusted for non-cash
stock-based compensation expenses, which will position us to make
substantial progress toward reaching GAAP profitability by the end of
2009."
Recent Corporate Highlights
-- In November, Akeena raised $26.1 million through a private
placement of shares, which gives the company the financial
flexibility to support its growth plans in 2008.
-- In mid December, Akeena expanded into the Palm Springs area,
marking the sixth new office opened in 2007.
-- In late December, Akeena received a commitment from Comerica
Bank to increase its existing credit line from $7.5 million to
$25 million.
-- In early January, Akeena announced it had signed a license
agreement with Suntech Power Holdings Co., Ltd. for the
distribution of its state-of-the-art solar panel technology,
Andalay, in Europe, Japan and Australia.
-- In late February, Akeena expanded into the Thousand Oaks area,
marking the first new office opened in 2008 and tenth overall.
-- In mid March, Akeena entered into a strategic partnership with
Kyocera, the fourth largest worldwide solar manufacturer, to
manufacture Andalay solar panels in 2008.
-- In mid March, Akeena was notified by the U.S. Patent Trade
Office (USPTO) that certain Andalay technology claims are
allowable. The company continues to work with the USPTO to
finalize the patent award.
Financial Results
Net sales for the fourth quarter of 2007 were $10.3 million, an
increase of 130%, compared to $4.5 million in net sales in the fourth
quarter of 2006 and increase of 27.6% compared to $8.1 million in
sales in the third quarter of 2007. Growth in the fourth quarter over
both the same quarter last year and the prior quarter reflects higher
volume of residential and commercial installations.
Gross profit for the fourth quarter 2007 was $1.9 million, or
18.2% of sales, compared to $0.8 million, or 17.2% of sales, in the
fourth quarter of 2006 and compared to $1.7 million, or 21.0% of sales
in the third quarter of 2007. On a year-over-year basis, the
improvement in gross margin reflects better absorption of engineering
and semi-fixed installation expenses. Sequentially, the decline in
gross margin reflects a higher proportion of commercial installations
in the fourth quarter revenue mix.
Operating expenses for the fourth quarter of 2007 grew to $6.5
million compared to $1.9 million for the same period last year as the
company significantly expanded its infrastructure during the year to
support its growth plans. The infrastructure expansion included
opening six new offices and more than doubling sales, marketing and
installation staff. Stock-based compensation was $1.3 million in the
fourth quarter of 2007 compared with $29,000 in the fourth quarter of
2006. Compared to the third quarter of 2007, operating expenses rose
$1.0 million reflecting $0.5 million of stock-based compensation and
$0.5 million of higher salaries and compensation expense including
year- end bonuses. Total operating expenses, excluding stock-based
compensation expense, depreciation and amortization, declined from 56%
of revenue in the third quarter to 49% in the fourth quarter. Net loss
for the fourth quarter of 2007 was $4.5 million, or $0.18 per share,
compared to net loss of $1.2 million, or $0.07 per share, in the
fourth quarter of 2006.
Installations for the quarter amounted to 1,316 kilowatts compared
to 515 kilowatts last year and 1,005 kilowatts in the third quarter.
For the year ended December 31, 2007, the company reported net
sales of $32.2 million, an increase of 140.6% over net sales of $13.4
million for 2006. Gross profit was $6.8 million, or 21.2% of sales
compared to gross profit of $2.9 million, or 22.0% of sales in 2006.
The 0.8% decrease in the gross profit margin reflects a higher
proportion of commercial installations in the revenue mix in 2007.
Stock-based compensation was $2.3 million in 2007 compared to $38,000
in 2006. Net loss for 2007 was $11.0 million, or $0.52 per share,
compared to a net loss of $1.8 million, or $0.16 per share, in 2006.
Cash and cash equivalents at December 31, 2007 were $22.3 million.
Common shares outstanding at December 31, 2007 were 27,410,684.
Outlook
For 2008, management anticipates increasing revenue by
approximately 100% over 2007 revenue of $32.2 million and achieving
EBITDA breakeven, adjusted for non cash stock-based compensation
expense of approximately $4.2 million, by the end of the year. For the
first quarter 2008, management expects revenue of approximately $12
million. A significant expansion of the company's sales office
footprint may change management's financial goals for 2008.
Conference Call Information
Akeena Solar will host an earnings conference call at 11:00 a.m.
Pacific Time (2:00 p.m. Eastern Time) today to discuss its fourth
quarter 2007 earnings results. Management will discuss strategy,
review quarterly activity, provide industry commentary, and answer
questions.
The call is being webcast and can be accessed from the "Investor
Relations" section of the company's website at www.akeena.com. If you do
not have Internet access, please dial 866-700-6979 in the U.S.
International callers should dial 617-213-8836. The passcode is
62234475. If you are unable to participate in the call at this time,
the webcast will be archived on the company's website. In addition, a
telephonic replay will be available for two business days, beginning
two hours after the call. To listen to the replay, in the U.S., please
dial 888-286-8010. International callers should dial 617-801-6888. The
passcode is 86914789.
About Akeena Solar, Inc. (NASDAQ: AKNS)
Founded in 2001, Akeena Solar's philosophy is simple: We believe
producing clean electricity directly from the sun is the right thing
to do for our environment and economy. Akeena Solar has grown to
become one of the largest national installers of residential and
commercial solar power systems in the United States. The company's new
solar installation technology, Andalay, is the only solar panel system
with integrated racking, wiring and grounding. Andalay panels offer
unprecedented reliability, performance and aesthetics. For more
information, visit Akeena Solar's website at www.akeena.com
Safe Harbor
Statements made in this release that are not historical in nature
constitute forward-looking statements within the meaning of the Safe
Harbor Provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by the use of words
such as "expects," "plans" "will," "may," "anticipates," believes,"
"should," "intends," "estimates," and other words of similar meaning.
These statements are subject to risks and uncertainties that cannot be
predicted or quantified and consequently, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, without limitation,
risks associated with the uncertainty of future financial results,
additional financing requirements, development of new products, the
effectiveness, profitability, and marketability of such products, the
ability to protect proprietary information, the impact of current,
pending, or future legislation and regulation on the industry, the
impact of competitive products or pricing, technological changes, the
ability to identify and successfully acquire, integrate and manage
client accounts and locations and deliver our services to customers of
businesses and accounts acquired from third parties, the effect of
general economic and business conditions. All forward-looking
statements included in this release are made as of the date of this
press release, and Akeena Solar assumes no obligation to update any
such forward-looking statements.
- Tables to Follow -
AKEENA SOLAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2007 2006 2007 2006
------------ ------------ ------------- ------------
Net sales $10,320,150 $ 4,487,585 $ 32,211,761 $13,390,139
Cost of sales 8,445,880 3,715,358 25,372,691 10,444,539
------------ ------------ ------------- ------------
Gross profit 1,874,270 772,227 6,839,070 2,945,600
------------ ------------ ------------- ------------
Operating
expenses
Sales and
marketing 2,102,767 735,257 5,978,799 1,562,732
General and
administrative 4,352,059 1,198,360 11,941,700 3,124,454
------------ ------------ ------------- ------------
Total operating
expenses 6,454,826 1,933,617 17,920,499 4,687,186
------------ ------------ ------------- ------------
Loss from
operations (4,580,556) (1,161,390) (11,081,429) (1,741,586)
------------ ------------ ------------- ------------
Other income
(expense)
Interest income
(expense), net 114,665 (24,112) 34,650 (67,655)
------------ ------------ ------------- ------------
Total other
income
(expense) 114,665 (24,112) 34,650 (67,655)
------------ ------------ ------------- ------------
Loss before
provision for
income taxes (4,465,891) (1,185,502) (11,046,779) (1,809,241)
Provision for
income taxes - - - -
------------ ------------ ------------- ------------
Net loss $(4,465,891) $(1,185,502) $(11,046,779) $(1,809,241)
============ ============ ============= ============
Loss per common
and common
equivalent
share:
Basic $ (0.18) $ (0.07) $ (0.52) $ (0.16)
============ ============ ============= ============
Diluted $ (0.18) $ (0.07) $ (0.52) $ (0.16)
============ ============ ============= ============
Weighted average
shares used in
computing loss
per common and
common
equivalent
share:
Basic 25,465,409 15,877,751 21,117,399 11,193,143
============ ============ ============= ============
Diluted 25,465,409 15,877,751 21,117,399 11,193,143
============ ============ ============= ============
AKEENA SOLAR, INC.
Consolidated Balance Sheet
December 31, December 31,
2007 2006
------------- ------------
Assets
Current assets
Cash and cash equivalents $ 22,313,717 $ 992,376
Accounts receivable, net 9,465,055 3,434,569
Other receivables 278,636 5,000
Inventory 8,848,467 1,791,816
Prepaid expenses and other current
assets, net 3,055,787 833,192
------------- ------------
Total current assets 43,961,662 7,056,953
Property and equipment, net 1,796,567 194,867
Due from related party - 21,825
Customer list, net 84,698 230,988
Goodwill 318,500 -
Other assets 162,880 24,751
------------- ------------
Total assets $ 46,324,307 $ 7,529,384
------------- ------------
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $ 6,716,475 $ 2,053,567
Customer rebate payable 346,097 1,196,363
Accrued liabilities 1,431,880 622,184
Accrued warranty 647,706 508,655
Common stock issuable 236,438 175,568
Deferred purchase price payable 20,000 -
Deferred revenue 1,442,834 981,454
Credit facility - 500,000
Current portion of capital lease
obligations 24,130 12,205
Current portion of long-term debt 191,845 17,307
------------- ------------
Total current liabilities 11,057,405 6,067,303
Capital lease obligations, less current
portion 46,669 42,678
Long-term debt, less current portion 644,595 28,673
------------- ------------
Total liabilities 11,748,669 6,138,654
------------- ------------
Commitments, contingencies and subsequent
events
Stockholders' equity:
Preferred stock, $0.001 par value;
1,000,000 shares authorized; none issued
and outstanding at December 31, 2007 and
December 31, 2006 - -
Common stock $0.001 par value; 50,000,000
shares authorized; 27,410,684 and
15,877,751 shares issued and outstanding
at December 31, 2007 and December 31,
2006 27,411 15,878
Additional paid-in capital 47,176,080 2,955,926
Accumulated deficit (12,627,853) (1,581,074)
------------- ------------
Total stockholders' equity 34,575,638 1,390,730
------------- ------------
Total liabilities and stockholders'
equity $ 46,324,307 $ 7,529,384
------------- ------------
- -
CONTACT: Investor Relations:
Lippert / Heilshorn & Associates
Jody Burfening/Elric Martinez, (212) 838-3777
emartinez@lhai.com
or
Akeena Solar, Inc.
President and CEO
Barry Cinnamon, (888) 253-3628
bcinnamon@akeena.net
SOURCE: Akeena Solar, Inc.
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